A Burger King employee who never missed a day of work in 27 years got a goodie bag for his service. The internet gave him $450K. Are employers not meeting the needs of workers?

Disappearance of pensions

One example of how employers have become less reliable is the demise of penison benefits. Decades ago, number of private companies in the U.S. offered their employees a pension plan. Employers would contribute, invest and manage retirement funds for their workers, who then received guaranteed monthly checks after they retire, often for the rest of their lives.

Over time, many of these companies ended up closing down their pension programs in favour of sponsoring 401(k) accounts, which put more onus on workers to invest, manage and save money for retirement.

“We’ve shifted from a more paternalistic system to a do-it-yourself savings plan,” Karen Friedman, executive director of the Pension Rights Center, told CNN.

Participation in pension plans has dropped steeply, and they’re not likely to make a comeback. There were 27.2 million participants in private-sector pension plans in 1975 — a number whittled down to 12 million by 2020, according to CNN, citing the Congressional Research Service. In that same period, employees in the private sector partcipating in 401(k) or profit-sharing plans soared from 11.2 million to 85.3 million.

If you wish to bolster your financial security and build retirement savings beyond contributing to a 401(k) plan, consider some of the following steps.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

Make a plan

Whether you’re saving up for your first home or working on paying off your debts, you’ll need to come up with a solid plan and set yourself some tangible goals.

For example, perhaps you can start by automating your credit card payments. Or, if they’re too difficult to tackle all at once, start with your highest-interest debt and work your way down so you don’t accumulate too much interest.

If tackling those debts seems like a tall task, you can take a different approach and pay off your smallest debts first and work your way up toward your larger ones. This method may accrue more interest overall, but the end goal is the same — to get rid of debt, period.

Finally, if you’re still feeling stuck, consider chatting with a financial adviser who can evaluate your situation and help you plan for the future.

Budget and save

Now that you’ve got a plan, you might be unsure about how to scrounge up the funds to complete your goals — but taking a look at your spending can be a good place to start.

There might be ways for you to cut down on costs, like canceling that streaming subscription you never use or securing a lower rate on your car insurance policy.

Perhaps try budgeting for your everyday expenses with a money management app, or use the cash stuffing hack. Make sure to cover your fixed expenses and necessities first before moving onto your savings and discretionary purchases.

Trade your favorite stocks any time

Investing doesn't have to be hard. Robinhood is the only place you can trade stocks, options and ETFs 24 hours a day, 5 days a week, all still commission-free. Start building your portfolio with as little as $1.

Get Started

Boost your income

If you’re in a place where your existing income and expenses leave you with nothing left each month, look into other income streams to give you more of a buffer.

You could monetize one of your hobbies and set up a side hustle. If you’ve got a spare room at home that’s going unused, consider cleaning it up and posting an ad on Airbnb to rent it out.

Or, do some research and start investing in the stock market. Some platforms will build you a customized portfolio and monitor and manage your investments, rebalancing where needed. You could start with using your spare change, or go a little further with real estate, such as investing in apartment buildings or vacation rentals, to grow your funds.